Govt to implement Methanol 15 pc blending with petrol, says Gadkari

Methnaol 15 (M15) in petrol will reduce pollution by 33% and diesel replacement by methanol will reduce pollution by more than 80%

India has successfully converted a two-wheeler engine, a Genset, power weeder (agriculture equipment) and is in process of converting many IC engines to Methanol, including railways and marine, the Minister said.

The final roadmap for ‘Methanol Economy’ being worked out by NITI Aaayog is targeting an annual reduction of US $ 100 Billion by 2030 in crude imports. To promote this renewable, alternate fuel a “Methanol Economy Fund” is also being contemplated. A cabinet note on Methanol in Inland Waterways and Marine Sector and overall adaptation of “Methanol Economy” will be moved shortly, the Minister said.

Methanol Benefits in Transportation sector

With very little modifications to existing engines (vehicles) and fuel distribution infrastructure, 15% of all vehicle fuels can be converted to Methanol & Di Methyl Ether (DME), Gadkari observed. Global engine manufactures like Volvo, Caterpillar, Mercedes and in collaboration with Indian players can manufacture these engines under the Make in India and will result in big FDI investments. The development of this sector will bring jobs in the engineering sector, he pointed out

India by adopting Methanol can have its own indigenous fuel at the cost of approximately Rs 19 per litre, at least 30% cheaper than any available fuel. Methanol fuel can result in great environmental benefits and can be the answer to the burning urban pollution issue. At least 20% diesel consumption can be reduced in next 5-7 years and will result in a savings of Rs 26,000 crore annually. Rs. 6000 crore can be annually saved from reduced bill in LPG in the next three years itself. The Methanol blending programme with gasoline will further reduce our fuel bill by at least Rs 5000 crore annually in next three years.

The ‘Make in India’ programme will get a further boost by both producing fuel indigenously and associated growth in automobile sector adding engineering jobs and also investments in Methanol based industries (FDI and Indian). However, Coal and Stranded Gas linkages are import policy initiatives to be taken, he said.

Focus is on augmenting Methanol production capacity of existing producers like GNFC, RCF & Assam Petro and through various routes of production, India will target a Methanol production of at least 5 million tons by 2021. PSU’s like BHEL, CIL & SAIL are contemplating to produce Methanol though the coal route and Oil PSU’s through the stranded gas route. BHEL at Trichy, the Talcher Fertilizer plant can also produce Methanol in large quantities in a short period of time, he informed.

Rising bill for crude oil a worry

Gadkari pointed out that India needs around 2900 crore litres of petrol and 9000 crore litres of diesel per year currently, the 6th highest consumer in the world. India, he said will double consumption of these fuels and become the 3rd largest consumer by 2030. The country’s import bill on account of crude stands at almost Rs 6 lakh crore at present..

Hydrocarbon fuels have also adversely affected the environment with Green House Gas Emissions (GHG). India is the third highest energy related carbon dioxide emitter country in the world. Almost 30%pollution in cities like Delhi is from automobiles and the growing number of automobiles on the road will further worsen the pollution. The Minister said the time has come for the government to present a comprehensive road map to reduce the urban pollution in the country and stop pollution related deaths completely.

He noted that Prime Minister Narendra Modi has set a goal for the country to reduce the crude import bill by 10% by the year 2022. “Crude oil imports drain our foreign exchange, putting enormous pressure on our currency and thereby weakening our bargaining power with the rest of the world. We need to have our own Indian Fuel of global relevance,” he said.

Methanol is a clean burning drop in fuel which can replace both petrol and diesel in transportation and substitute for LPG, wood, kerosene in cooking fuel. It can also replace diesel in Railways, Marine Sector, Gensets, Power Generation and Methanol based reformers could be the ideal compliment to Hybrid and Electric Mobility. Methanol Economy is the “Bridge” to the dream of a complete “Hydrogen based fuel systems”, he said.

Methanol burns efficiently in all internal combustion engines, produces no particulate matter , no soot , almost nil SOX and NOX emissions (NEAR ZERO POLLUTION). The gaseous version of Methanol – DME can blended with LPG and can be excellent substitute for diesel in large buses and trucks.

Methanol can be produced from Natural Gas , Indian High Ash Coal , Bio-mass, MSW , stranded and flared gases and India can achieve (through right technology adaptation} to produce Methanol @ Rs.19 a litre from Indian coal and all other feedstock. The best part is the world is already moving towards renewable methanol from C02 and the perpetual recycling of C02 into Methanol, say CO2 emitted from Steel plants, Geothermal energy or any other source of CO2, effectively “Air to Methanol”

Global use of Methanol and DME

During the last few years, the use of Methanol and DME as fuel has increased significantly. Methanol demand is growing at a robust 6 to 8 % annually. Globally, the installed capacity of Methanol is  120 MT and will increase to about 200 MT by 2025.

Currently Methanol accounts for almost 9% of transport fuel in China. China alone produces 65% of world Methanol and it uses its coal to produce Methanol. Israel, Italy have adopted the Methanol 15% blending programme with Petrol and fast moving towards M85 & M100. Japan, Korea have extensive Methanol & DME usage and Australia has adopted GEM fuels (Gasoline, Ethanol & Methanol) and blends almost 56% Methanol. Methanol has become the choice of fuel in Marine Sector worldwide and countries like Sweden are at the forefront of usage. Large passenger ships carrying more than 1500 people are already running on 100% Methanol.  Around 11 African and many Caribbean countries have adopted Methanol cooking fuel and across the world Gensets and industrial boilers are running on Methanol, instead of diesel.

Renewable Methanol by capturing Co2 back from the atmosphere is becoming very popular and is seen by the world as the “Enduring Energy Solution known to Mankind”. Methanol is a significant solution to the burning problem of Urban pollution worldwide, the Minister argued.  

What India Can do?

India has an installed Methanol Production capacity of 2 MT per annum. As per the plan prepared by NITI Aayog, using Indian High Ash coal, Stranded gas, and Biomass can produce 20MT of methanol annually by 2025.  India, with 125 Billion Tonnes of proven Coal reserves and 500 million tonnes of Biomass generated every year and the huge quantities of Stranded & Flared gases has a huge potential for ensuring energy security based on alternate feedstock and fuels.

NITI Aaayog has drawn out a road map to substitute 10% of Crude imports by 2030, by Methanol alone. This requires approximately 30MT of Methanol. Methanol & DME are substantially cheaper than Petrol and Diesel and India can look to reduce its fuel bill 30% by 2030.

NITI Aayog’s road map for Methanol Economy comprises:

· Production of methanol from Indian high ash coal from indigenous technology,  in large quantities and adopting regional production strategies and produce Methanol in large quantities @ Rs. 19 a litre. India will adopt Co2 capturing technology to make the use of coal fully environment friendly and our commitments to COP21

· Bio-mass, Stranded Gas & MSW for methanol production. Almost 40% of Methanol Production can be through these feed stocks.

· Utilisation of methanol as well as DME in transportation – rail, road, marine and defence. Industrial boilers, diesel gensets, power generation and mobile towers  are other applications

· Utilisation of methanol and DME as domestic cooking fuel- cook stoves . LPG = DME blending programme.

· Utilisation of methanol in fuel cell applications in marine, gensets and transportation.